Carefully consider the data below: £2,100 was paid in relation to electricity during the accounting period ending on 31st January 2020. ● • The cost of the electricity consumption for the period 1st February 2019 to 31st January 2020 amounted to £2,125. The accrued expense in relation to electricity as at 31st January 2020 was £155. Calculate the amount owed in relation to electricity as at 31st January 2019. ● Select one: O a. £180 O b. £25 O c. £130 O d. £335

Carefully consider the data below: £2,100 was paid in relation to electricity during the accounting period ending on 31st January 2020. ● • The cost of the electricity consumption for the period 1st February 2019 to 31st January 2020 amounted to £2,125. The accrued expense in relation to electricity as at 31st January 2020 was £155. Calculate the amount owed in relation to electricity as at 31st January 2019. ● Select one: O a. £180 O b. £25 O c. £130 O d. £335

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.

Question

Carefully consider the data below:
£2,100 was paid in relation to electricity during the accounting period ending on 31st
January 2020.
• The cost of the electricity consumption for the period 1st February 2019 to 31st January
2020 amounted to £2,125.
• The accrued expense in relation to electricity as at 31st January 2020 was £155.
Calculate the amount owed in relation to electricity as at 31st January 2019.
Select one:
O a. £180
O b. £25
OC.
£130
O d. £335

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